NTES finds buyers again around 268.81

Overview

Moving lower for the 4th day in a row, NTES ended Monday at 272.68 edging lower $0.31 (-0.11%). Today's closing price of 272.68 marks the lowest close since April 3rd. Trading up to $2.85 lower after the open, NetEase Inc. managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Volatility

Monday's trading range was $6.77 (2.49%), that's far below last trading month's daily average range of $10.78. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 268.81 and 278.75 which it has been in now for the last three days.

Support/Resistance

After trading as low as 268.81 during the day, the share bounced off the key support level at 270.58. The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 269.86 in the previous session, the stock found buyers again around the same price level today at 268.81.

Trend

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Order Flow

With prices trading close to this year's low at 261.88, downside momentum could accelerate should the market break out to new lows for the year.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bearish.